Implementation of Green Business in Micro, Small, and Medium Enterprises (MSMEs) in Bontang City
DOI:
https://doi.org/10.35568/abdimas.v9i1.7350Keywords:
Green Business, MSMEs, Sustainable Development, Environmental Management, Community Service, Training, Sustainability EducationAbstract
Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in Indonesia’s economic development, accounting for approximately 60% of the national Gross Domestic Product (GDP) and employing more than 97% of the formal workforce. Despite this substantial contribution, MSMEs continue to face various challenges, particularly those related to the environmental impact generated from production and operational activities. Many MSMEs, particularly in manufacturing, construction, and agriculture, continue to employ resource-intensive and inefficient production and marketing methods. Therefore, adopting green business practices has become an essential agenda to minimize environmental degradation while strengthening MSMEs’ competitiveness in the global market. Green business refers to business practices that prioritize the efficient use of natural resources, minimize pollution, and integrate environmental sustainability across all stages—from raw material selection and production processes to distribution. Key aspects include waste reduction, energy efficiency, and product recycling. For MSMEs, adopting green practices offers long-term advantages such as reduced operational costs, enhanced brand reputation, and improved access to international markets with strict environmental standards. However, MSMEs often face challenges in implementing these practices, mainly due to limited capital, restricted access to green technologies, and high initial investment requirements, such as those for renewable energy systems or recycling facilities. Additionally, low public awareness and the lack of strong regulatory support hinder MSMEs from transitioning toward environmentally friendly business models. Many business owners still perceive green practices as costly and burdensome. Therefore, implementing green business within MSMEs requires a practical, measurable, and resource-appropriate approach that aligns with their operational capacities.
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